Imagine you’re importing a €10 smartphone case to Europe. Currently, there is no need to pay any customs fees or taxes, so the customer would still only pay €10. As of the 1st of July 2021, the same smartphone case arriving in Belgium, for example, will be subject to a 21% VAT surcharge (€2.10) and a customs fee ranging from €5 to €15. VAT rates and customs fees vary depending on the destination country.
In this case, the customer will be charged anywhere between €17.10 and €27.10 for the same smartphone case. If you are an IOSS supplier, however, your customer will only have to pay the VAT surcharge.